Friend or foe: Customer-supplier relationships and innovation

Krolikowski, Marcin W.; Yuan, Xiaojing

doi:10.1016/j.jbusres.2017.04.023

Cited by 134 publications

(72 citation statements)

References 59 publications

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“…Even though these listed companies face the problem of high customer concentration, they can hardly play the role of facilitating corporate sustainable innovations through customer concentration. Indeed, the positive relationship between customer concentration and innovation is consistent with previous literature [40,66,67]. Especially, Chen [68], who constructs a theoretical framework that models the impact of buyer power on a supplier's product innovation and process innovation by identifying the sources of buyer power and the channels through which buyer power manifests.…”

Section: Customer Concentration and Corporate Innovationsupporting

confidence: 83%

“…Especially, Chen [68], who constructs a theoretical framework that models the impact of buyer power on a supplier's product innovation and process innovation by identifying the sources of buyer power and the channels through which buyer power manifests. Krolikowski and Yuan [66] find that close ties between customers and suppliers increase collaboration and information sharing, facilitating R&D investments.…”

Section: Customer Concentration and Corporate Innovationmentioning

confidence: 99%

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Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

et al. 2020

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Few studies have addressed how customer concentration affects the decision of a firm’s research and development (R&D) strategies and then innovation outcome. Using a sample of China’s listed companies for the period from 2009 to 2017, this study investigates the relationship between customer concentration and enterprise sustainable innovations, as well as how such the relationship changes with economic policy uncertainty. The findings imply that there is a significant inverted-U-shaped relationship between customer concentration and enterprise sustainable innovations. Under a high level of economic policy uncertainty, the advantage of the customer relationship is maximized. In this context, raising customer concentration significantly promotes enterprise sustainable innovations. Customer concentration affects innovations differently as the equity properties, and locations of enterprises vary under different levels of economic policy uncertainty. Thus, the interval of customer concentration conducive to enterprise innovations differs. The results are robust to econometric techniques that control for endogeneity. Overall, our findings suggest that enterprises build and adjust the customer relationship and improve the driving mechanism for sustainable innovations.

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Section: Customer Concentration and Corporate Innovationsupporting

confidence: 83%

Section: Customer Concentration and Corporate Innovationmentioning

confidence: 99%

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

et al. 2020

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“…In foreign studies, Dan et al [25] found that when there are government customers, the corporate financing cost is lower, but they have not considered the impact of this type of customer on corporate innovation activities. At the same time, some scholars have tried to explain the impact of large customers on the development of business operations from the perspective of a supply chain [26][27][28], but they focus on customer concentration. The research is not deep enough to discuss the type of customer structure, especially customers with a government background.…”

Section: Government Background Large Clients and Innovation Investmenmentioning

confidence: 99%

“…Many domestic and foreign scholars have done research with customer concentration as the starting point. The vast majority of literature found that the higher the customer concentration, the higher the business risks facing the company [28,[41][42][43]. The over-reliance on large customers means such companies' financial strategies tend to be conservative, with less innovation and R&D. However, some studies are based on specific environmental systems, with large customers considered to be beneficial to promote supply chain integration and reduce corporate risk [26], and enabling them to invest more resources in their development process.…”

Section: The Influence Mechanism Of Government Clients On Innovation mentioning

confidence: 99%

“…In order to avoid the endogenous impact of the two on the operation and development of private enterprises, this paper also controls the government subsidies (Sub) obtained by the company in the same period. At the same time, the proportion of nongovernmental background customers' purchase orders (NonProcurement) is also considered; in addition, referring to mainstream literature such as Hou et al [49] and Krolikowski and Yuan [28], this paper also controls some enterprise financial and equity structure variables, including company size (Size), debt level (Lev), total return on assets (ROA), operating cash flow (CF), cumulative listing year (Age), Management shareholding (Managhld), and institutional investor shareholding (Insthld).…”

Section: Model Designmentioning

confidence: 99%

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Government Background Customers and Private Enterprise Innovation from the Perspective of Supply Chain Risk Transmission

et al. 2020

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Private enterprises are major contributors to China's market economy. In order to ensure the sustainability of economic development, China pays more attention to the role of science and technology in promoting the sustainability of the private economy. Based on a sample of all A-share listed companies in the Chinese capital market, we distinguished between government and non-government purchase order data, and examined the impact of large government background customers on private enterprise R&D innovation from the perspective of supply chain risk transmission. Due to the implementation of China's new accounting standards and the delay in the public update of government procurement data, we selected samples from 2007-2015. The research results show that the government background customers can significantly increase the R&D investment of private enterprises, and this relationship is more significant in the sample of mid-level government background customers and private enterprises in poor areas; further analysis found that government background purchase orders can promote innovation investment by mitigating the risks facing a company. From a practical point of view, the research findings of this paper are helpful for understanding the impact of customer structure on the innovation activities of enterprises in a market economy environment.

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Do major customers encourage innovative sustainable development? Empirical evidence from corporate green innovation in China

et al. 2022

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This paper examines the impact of customer concentration on green innovation in Chinese listed firms between 2006 and 2018 through the dynamic panel generalized method of moments regressions. It is reported that major customers positively impact corporate green innovation, indicating that firms have more incentives to engage in innovative green practices to maintain stable relationships with major customers. In addition, the positive relationship between customer concentration and green innovation is more pronounced in state-owned enterprises, firms located in the provinces with a high level of marketization, and after China's new Environmental Protection Law implementation. Moreover, we observe that the positive impact of customer concentration on corporate green innovation is more significant among industrial firms and firms operating in heavily polluting industries. Furthermore, industrial competition is an essential channel for major customers to affect corporate green innovation.

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Friend or foe: Customer-supplier relationships and innovation

Cited by 134 publications

References 59 publications

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

Government Background Customers and Private Enterprise Innovation from the Perspective of Supply Chain Risk Transmission

Do major customers encourage innovative sustainable development? Empirical evidence from corporate green innovation in China

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